Israel Canada Tycoons Eye New Shell Merger Amid Cannabis Debt Settlement
Barak Rosen and Asi Touchimayor are advancing their acquisition of the Tikun Olam Cannbit stock shell following court approval. The real estate tycoons control public firms valued over ₪6 billion and are weighing strategic spinoffs for their growing portfolios.
The Lod District Court approved in August the acquisition offer submitted by Barak Rosen and Asi Touchimayor as part of the debt settlement of the cannabis company Tikun Olam Cannbit, bringing the two businessmen closer to acquiring the remaining stock shell. Rosen and Touchimayor currently hold controlling stakes in three public companies with a combined market capitalization of over ₪6 billion, the largest and best-known being Israel Canada, which trades at a value of ₪4.6 billion. This figure is expected to rise following the completion of its merger with real estate company Acro.
Consequently, acquiring control of a shell company with no active operations, listed on the Tel Aviv Stock Exchange's maintenance list and valued at ₪1.5 million, raises initial questions about their intentions. However, the trajectory of the three public companies under their control offers insight into their strategy. Their parent company Israel Canada, Israel Canada Hotels controlled through it, and Canada Global all began their current paths through mergers with stock market shells. Market estimates previously suggested that Rosen and Touchimayor might aim to spin off Israel Canada's nursing home operations into an independent public entity via a shell merger, mirroring their move last year with Israel Canada Hotels.
Strategic Shifts and Real Estate Assets
However, three recent market developments—two initiated by Israel Canada itself and a third by another real estate firm, Africa Israel Residences—point toward a different potential direction. Israel Canada, which engages in entrepreneurial real estate alongside income-producing properties, initiated the acquisition and merger of Acro Real Estate earlier this year in a deal valued at over ₪3 billion, which is nearing completion. Estimates suggest Rosen and Touchimayor may opt to split and spin off the income-producing operations of Israel Canada and Acro, similar to the move announced by Africa Israel Residences last week to hive off its income-producing assets valued at ₪1.1 billion into a separate publicly traded company.
Israel Canada has also operated in the nursing home sector since 2022, holding a single asset: the Naveh Aviv nursing home in Kfar Shmaryahu, comprising 94 housing units. In March 2026, the company entered an agreement with veteran pension funds Amitim for a ₪100 million investment in this sector at a valuation of ₪500 million. Due to its relatively small scale, the nursing home activity is not classified as an independent business segment but is included under the company's other activities, which generated ₪14 million in revenue during the first half of 2026—less than 3% of Israel Canada's total periodic revenue.
Weighing Options for a Shell Merger
Merging the nursing home activity into a stock shell and floating it as a separate public entity could leave the merged parent company with a slim operational scope, at least until further acquisitions or projects are realized. Accordingly, the investment agreement with Amitim grants the company an additional seven years before the activity must be floated.
In contrast, Israel Canada held 11 income-producing properties valued at ₪2.9 billion at the end of 2025, generating ₪43 million in revenue in the first half of 2026. Meanwhile, Acro holds seven income-producing properties valued at ₪1.8 billion, which yielded ₪56 million in revenue between January and June of this year. Combining the income-producing assets of both companies under one separate roof would create an entity with an annual revenue run rate of approximately ₪200 million and holdings valued at ₪4.7 billion. With such a scale and valuation, this consolidated portfolio appears to be a stronger candidate for a spinoff via an acquired shell.
The Shell Mergers That Built an Empire
Rosen and Touchimayor secured control of Israel Canada through their joint ownership of 30.5% of its shares alongside voting rights for an additional 10%. The company, where they serve as CEO and chairman respectively, began its current structure in 2010 following the merger of two stock shells they took over in 2006 and 2007, into which they injected private real estate assets: Pan Technologies, renamed Pangaea Real Estate, and Dafron, renamed Pangaea Israel. In 2013, the united firm was renamed Israel Canada. Having traded at a value of ₪141 million following its 2010 merger, it now commands a market cap of ₪4.6 billion, with its stock surging 1,379% compared to a 2u94% rise in the TA Real Estate Index.
Rosen and Touchimayor merged Israel Canada Hotels last year with DNA, whose control they acquired in 2021 for ₪17 million; the hotel arm now trades at a value of ₪1 billion. Canada Global began its journey under their control after they acquired a controlling stake in the stock shell Aviv Arlon in November 2022 for ₪11 million, renaming it in March 2023. Investments by Adam Neumann and Assaf Rappaport in September 2024, alongside several US asset acquisitions, pushed the company to a peak valuation of ₪931 million in November of that year. Despite subsequent investments by The Phoenix, the stock has since declined by 49%, bringing the current company valuation to roughly half a billion shekels.
Closing the Chapter on Cannabis
The debt settlement approved for Tikun Olam Cannbit effectively draws a line under the company's cannabis operations, bringing things full circle for Rosen. He had led a group of investors to acquire control of the firm in 2019, only to watch their investment evaporate. In 2023, Ronen Elad became the company's largest shareholder, CEO, and chairman, and under the debt settlement, he is set to take over the remaining cannabis operations in exchange for writing off the ₪3.8 million debt the company owed him.
Rosen and Touchimayor will be required to pay ₪5 million in exchange for the allocation of 99.9% of the company's shares to their ownership, with the funds used to settle remaining corporate debts, primarily a ₪10.3 million liability to Bank Hapoalim. For Rosen and Touchimayor, this represents an improvement over a previous rejected buyout offer in which they proposed acquiring a 75% stake for ₪10 million.
The business ties between Rosen and Touchimayor and Ronen Elad extend beyond the Tikun Olam Cannbit debt settlement. In March of this year, the two joined an investor group led by Elad to acquire control of drone manufacturer Aerodrome. However, an option granted to them by Elad to acquire a 14% stake in the company expired this past summer without being exercised.
